Customers ready to switch banks

BANK customers feel frustrated and trapped, with 55pc saying they would switch banks if law changes make it easier, a survey says.

ATM

Customers ready to switch banks

CUSTOMER loyalty towards banks is a thing of the past, research has found.

An online poll conducted by mortgage broker Loan Market Group found 55 per cent of respondents would "definitely'' change banks once Federal Government proposals to make it easier to switch become law.

Thirty-six per cent said they would adopt a "wait and see'' approach, while just 9 per cent said they would stick with their current provider because changing was "too much hassle''.

Loan Market Group chief executive Jennifer Nielsen said the survey confirmed something that was well-known about Australians and banks.

"Australians are among the most cynical of banks in the world,'' Ms Nielsen said.

"It's a fact and the banks know that. We've just always loved to hate our banks,'' she said.

Ms Nielsen said the latst survey showed customers felt frustrated and trapped by the banks, particularly when it came to home loans.

"They believe that when home loan rates rise by more than official rates the bank hasn't done the right thing by them, yet it seems too difficult to change accounts,'' she said.

The difficulties in global money markets has made accessing money more expensive for everyone, but especially smaller, non-bank lenders.

Ms Nielsen said the situation had led to a reduced range of products in the market.